The sales of Honda two-wheelers in the country have contracted due to several reasons. Consequently, India is no longer Japanese brand Honda’s biggest two-wheeler market. The no.1 spot has been overtaken by Indonesia.
In India, Honda sold 4.7 million two-wheelers in the FY20 which is identical to the brand’s sales figure (4.72 million units) for the FY17. On the other hand, in Indonesia, it recorded a sale of 4.85 million units in the FY20, which is still lesser from that of the FY19, but sufficient enough to make the country its no.1 market.
Honda is the second-largest two-wheeler manufacturer in India. It makes the country’s best-selling scooter, the Honda Activa, and has a strong grip in the nation’s scooter market where it has retained the top position with a share of 57%. In fact, as of the end of the FY20, scooters claimed 67% of Honda’s domestic sales volume.
In the last couple of years, the demand for two-wheelers in India has been weak because of several reasons such as the rise in insurance costs, price hikes, natural calamities, etc. As per SIAM, the overall share of scooters in the country has come down to under 32% last year from more than 34% recorded three years ago. The aforementioned factors might have also contributed to Honda’s declined sales figures in the country and thus gave Indonesia, where scooters and mopeds make up more than 85% of the total two-wheeler sales, a chance to become the brand’s biggest two-wheeler market.
In other news, Honda restarted production at its biggest two-wheeler factory in India located in Narsapura, Karnataka, in a phased manner on 25 May 2020. The remaining three manufacturing facilities will resume operations this week.